Latest news with #Kazatomprom
Associated Press
13 hours ago
- Business
- Associated Press
URAA Taps Into Rising Uranium Demand Amid Booming Interest In AI And Nuclear
By Kyle Anthony, Benzinga DETROIT, MICHIGAN - June 24, 2025 ( NEWMEDIAWIRE ) - Among the rising demand for critical minerals is a surge in uranium mining stocks that corresponds to advancements in artificial intelligence (AI) and a push for greater use of nuclear energy. Many people are viewing nuclear energy as a viable source due to its low greenhouse gas profile while also delivering the highest capacity. Essential to nuclear energy is uranium, a heavy metal that can be used as an abundant source of concentrated energy for nuclear reactors. Growing Demand And Limited Supply According to the World Nuclear Association, Kazakhstan is the world's largest producer of uranium, supplying approximately 40% of the world's mined uranium. In 2023, as reported by the Financial Times, approximately two-thirds of sales by Kazakhstan's state-owned mining group, Kazatomprom, went to buyers domiciled in Russia, China and the home market. Kazatomprom's January 2025 investor handout noted that 45% of 2023 regional sales were in Asia. With an increasing amount of uranium being sent eastward, understanding the U.S.'s domestic uranium mining capabilities has come to the forefront. As the U.S. Energy Information Administration (EIA) reported, in 2023, U.S. nuclear generators used 32 million pounds of imported uranium concentrate (U3O8) and only 0.05 million pounds of domestically produced U3O8. Imports of U3O8 came from Canada, Australia, Russia, Kazakhstan and Uzbekistan. The Trump administration has indicated more significant support for the domestic uranium mining industry, gleaned from the president's executive order declaring a national energy emergency. Furthermore, in 2024, the Department of Energy received $2.7 billion in congressional funding to help revive domestic fuel production for commercial nuclear power plants. Simply put, the U.S. is making strides to develop domestic uranium capacity, lowering dependence on foreign supply. Regarding future demand for uranium, the World Nuclear Association estimates a 28% increase over 2023-2030. Demand thereafter will depend on new nuclear plants being built and the rate at which older plants are retired. For the decade 2031 to 2040, uranium demand is estimated to increase by 51%. The Impact Of Trade And AI On Uranium Prices Recently, uranium prices hit an all-time high due to the increasing energy demand associated with artificial intelligence data centers, which is driving increased demand for nuclear fuel. As reported by the Financial Times, prices for enriched uranium have hit $190 per separative work unit – the standard measure of the effort required to separate isotopes of uranium – compared with $56 three years ago. With many big tech firms beginning to prioritize nuclear power as an energy source, this has resulted in a price increase for uranium. However, rising trade tensions are poised to impact uranium prices. In a recent earnings call, Grant Isaac, CFO of Cameco, one of the world's largest publicly traded uranium companies, noted that a proposed 10% U.S. tariff on Canadian energy products, including uranium, could lead to significant price inflation in the global uranium market. President Trump's tariffs on Canada are currently in play. As reported by the EIA, approximately 27% of the U.S.'s imported uranium comes from Canada. Renewed Interest In Nuclear The increasing demand for electricity has put nuclear energy back in the spotlight. As reported by Bloomberg, there are 61 nuclear power plants under construction globally. Another 90 or so are in the planning stage and more than 300 have been proposed. The proliferation of nuclear plants will require more uranium to be readily available for use. With more nations building nuclear plants as a viable energy source, the demand for uranium is expected to continue to increase. Trading Uranium With Direxion For short-term traders looking to gain comprehensive exposure to companies involved in the uranium industry, Direxion's Daily Uranium Industry Bull 2X Shares (URAA) offers enhanced, pure-play exposure to companies involved in the uranium mining industry, which may include mining, exploration, development and production of uranium, or holding physical uranium, owning uranium royalties or engaging in other, non-mining activities that support the uranium mining industry. URAA is a leveraged ETF designed to track 200% of the daily performance of the Solactive United States Uranium and Nuclear Energy ETF Select Index, before fees and expenses. For investors who are bullish on the uranium industry, this ETF presents a way to engage with seminal companies and participate in their growth patterns. This ETF is best suited for those who can actively manage the inherent risks of leverage and are looking to attempt to capitalize on short-term trends occurring in the uranium industry, and as such, should not be held for more than a day. Featured image byAjay Pal Singh AtwalonUnsplash. This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice. This content was originallypublished on further disclosureshere. An investor should carefully consider the Fund's investment objective, risks, charges, and expenses before investing. The Fund's prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain the Fund's prospectus and summary prospectus call 866-476-7523 or visit our website at The Fund's prospectus and summary prospectus should be read carefully before investing. Direxion Shares Risks – An investment in the Fund involves risk, including the possible loss of principal. The Fund is non-diversified and includes risks associated with the Fund concentrating its investments in a particular industry, sector, or geography which can increase volatility. The use of derivatives such as futures contracts and swaps are subject to market risks that may cause prices to fluctuate over time. Leverage Risk – The Fund obtains investment exposure in excess of its net assets by utilizing leverage and may lose more money in market conditions that are adverse to its investment objective than a fund that does not utilize leverage. A total loss may occur in a single day. Leverage will also have the effect of magnifying any differences in the Fund's correlation with the Index and may increase the volatility of the Fund. Daily Index Correlation Risk – A number of factors may affect the Fund's ability to achieve a high degree of correlation with the Index and therefore achieve its daily leveraged investment objective. The Fund's exposure to the Index is impacted by the Index's movement. Because of this, it is unlikely that the Fund will be perfectly exposed to the Index at the end of each day. The possibility of the Fund being materially over- or under-exposed to the Index increases on days when the Index is volatile near the close of the trading day. Nuclear Energy and Uranium Mining Companies Risk – The price of uranium may be affected by changes in inflation rates, interest rates, monetary policy, economic conditions and political stability. The exploration for uranium and development of uranium mines involves significant financial risks over a significant period of time, which even a combination of careful evaluation, experience and knowledge may not eliminate. Energy Sector Risk – Energy sector securities may be adversely impacted by changes in the levels and volatility of global energy prices, global supply and demand, and capital expenditures on the exploration and production of energy sources. Additional risks of each Fund include Effects of Compounding and Market Volatility Risk, Leverage Risk, Market Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Daily Index Correlation Risk, Other Investment Companies (including ETFs Risk), Cash Transaction Risk, Passive Investment and Index Performance Risk. Please see the summary and full prospectus for a more complete description of these and other risks of the Fund. Distributor: ALPS Distributors, Inc. View the original release on
Herald Sun
05-05-2025
- Business
- Herald Sun
Which metals won in April?
Gold and uranium were the only winners among our eight key Up, Up, Down, Down commodities after hitting new highs in April Coal, lithium, nickel hit multi-year lows Iron ore, copper rocked by tariffs, but rare earths capture imagination in spite of price drop WINNERS Gold Price: US$3302.50/oz % Change: +6.00% There's nothing that gets the punters going like gold right now. Futures over in the States charged as high as US$3500/oz after Donald Trump's tariffs on all and sundry sent markets into a tailspin and investors chased sexier forms of safe haven. US bonds, the investing version of staying in on Friday night to watch reruns of Grand Designs, went haywire and the US dollar dropped hard, sending money flocking into gold. That subsided somewhat when the Trump Administration pulled a reverse ferret, sending bullion falling into the end of the month. No worries for gold producers, who are tracking to pull in stonking profits this year with spot margins sitting at upwards of $3000/oz plus or minus some hedging and additional royalty payments. Investment demand for gold rose 170% year on year in the March quarter, with gold demand hitting a level for a March quarter not seen in nine years. ETF inflow remained strong in April, with Chinese inflows immediately after Liberation Day exceeding flows into Chinese ETFs through all of January-March. DOWN Gold prices dipped after hitting their all-time high, coming under pressure as Donald Trump's stance on China trade tariffs softened. Chinese gold sales heading into the Labour Day public holiday week also put pressure on the gold price, with around 1Moz of bullion liquidated from Shanghai futures and gold exchange holdings ahead of the break. READ Still Going Strong: Gold demand hits a NINE-year March quarter high Gold threatened a complete breakout before Trump's softening on tariffs shackled prices. Pic: LBMA Uranium (Numerco) Price: US$67.50/lb % Change: +5.05% Spot uranium prices finally took a turn back for the better, climbing sharply at the end of April and after month's end. They're now at US$70/lb, heading back in the direction of contract based term prices which are hovering around US$80/lb and more accurately reflect prices being accepted by utilities. A major trigger was a disappointing March quarter for the world's largest producer Kazatomprom. The street is growing less certain of its ability to hit guidance this year after a 14% QoQ drop in yellowcake output from its Kazakh mines. UP Cameco's Tim Gitzel told analysts on an investor call that as much as 70% of utility requirements for the next two decades remains uncontracted, suggesting utilities will need to return to the market in a big way. Deep Yellow (ASX:DYL) delayed FID again on its Tumas mine in Namibia, suggesting much higher prices were needed to incentivise new supply, prolonging emerging deficits. DOWN It matters little on the global scale, but the strong election win by Anthony Albanese's Labor Party over Peter Dutton's Liberal-National Coalition will chill momentum from the nuclear and uranium lobbies in Australia. Chinese scientists have built a thorium reactor out in the Gobi Desert. Could it disrupt the uranium market and nuclear fission sector? It's way to early to even consider it at this stage, but it's also hard to find uranium bears, so this is our second 'down' for this month. READ Uranium price rebound is overdue, and these African projects are getting ready Uranium spot prices have finally picked up in late April. Pic: Numerco LOSERS Coal (Newcastle 6000 kcal) Price: US$97.50/t % Change: -5.75% Coal was put under pressure in April, with Newcastle coal futures hitting a four year low of US$93.70/t on April 23, according to Trading Economics. A ramp up in Chinese domestic coal output and mild Asian winter have combined to reduce demand for seaborne coal at a time of strong supply. Met coal prices on the other hand rose at the end of the month after a fire at the Moranbah North mine in Queensland and solid steel production numbers out of China and India. Futures surged as high as US$198/t in early April and are now at US$185/t, having crashed in the US$160s in March. UP Glencore has crystallised plans to cut production at Cerrejon in Colombia by up to 10Mt in 2025, a move which could thrust the conglomerate into conflict with local unions. Strong quarterly and half year results from New Hope Corp (ASX:NHC), Whitehaven Coal (ASX:WHC) and Yancoal Australia (ASX:YAL) showed many Australian miners could still make cash with the right cost base and product mix. DOWN Around 10-15% of the coal market is now lossmaking, according to Commbank's Vivek Dhar. That means prices could rebound, but high inventories and weaker Chinese demand will likely keep prices in check without mine closures. READ Counter Cycle: 'Sex and violence' in the US could turn into gold for resources stocks Coal prices continue to look weak. Pic: Trading Economics Rare Earths (NdPr Oxide) Price: US$56.36/kg % Change: -7.75% The fortunes of the rare earths market and rare earths stocks diverged as Trade War mania sent critical minerals explorers soaring at the same time prices were coming off the boil in China. One big question now is how relevant pricing indices will be if Western governments can subsidise supply chains outside the rare earths heartland into existence. Lynas (ASX:LYC) is looking to begin producing dysprosium and terbium later this quarter, two heavy rare earths recently placed under export controls by the Chinese Government. It's looking for western buyers, delivering the promise of a supply chain for those metals in which the Chinese price is not relevant. UP Analysts are beginning to project higher consumption for rare earth magnets as tech companies begin to commercialise humanoid robots in China, the US and elsewhere, potentially doubling the size of future rare earths demand. Executive orders from Donald Trump's US Administration, and rumours about a planned rare earths stockpile, have sent rare earth stocks on a tear. Lynas is up ~30% YTD and smaller rare earth stocks are also catching tailwinds. DOWN Rare earth demand in the key market of China remains subdued, with the Shanghai Metals Market reporting the market is heading into an 'off-season' for purchases. Some market participants are concerned critical minerals stockpiles like the one proposed by Australia could bring uneconomic projects to market, subduing or distorting market pricing in the years ahead. READ The US wants to stockpile rare earths, and these miners are running hot as a result While rare earths stocks have been charging, Chinese market prices have been falling. Pic: SMM Copper Price: US$9125/t % Change: -6.02% Copper fell at the whim of US President Donald Trump, with the initial surge from the fear tariffs could be imposed on the metal drowned out by the magnitude of the economic damage wrought by reciprocal tariffs. The market remains delicately balanced, with Chinese buying of inventory stock and creeping backwardation showing there remains tightness in the physical market. UP Copper supply remains a delicate thing, with a death and subsequent outage at BHP's Antamina JV in Peru leading to a late month recovery in prices. The threat of copper specific tariffs remains live, with US prices still priced far above the LME benchmarks. DOWN The International Copper Study Group expects to see surpluses of 289,000 tonnes for 2025 and 209,000 tonnes for 2026. The ICSG has also revised down its copper usage growth rate for 2025 from 2.7% to 2.4% on account of the trade war, slowing to 1.8% next year. READ Kristie Batten: As copper market tightens, Hillgrove is looking to grow Copper took a hit from Trump's tariff policies. Pic: LME Nickel Price: US$15,418/t % Change: -3.14% Three month LME nickel prices sagged as low as US$14,030/t during the month of April, a low point stretching back to August 2020. That came as Trump's tariffs roiled markets and a surplus driven by a surge in Indonesian nickel supply, much of it bankrolled by China, kept supply-demand dynamics in check. UP Indonesia has lifted taxes on nickel miners, something which could chill output from the island nation, though the 14-19% price linked royalties will be far higher than rates for refined products like ferronickel and matte. ASX bellwether Nickel Industries (ASX:NIC) delivered a strong set of quarterly results, showing it remains profitable even with subdued prices. DOWN The nickel surplus will rise from 179,000t in 2024 to 198,000t in 2025, according to the International Nickel Study Group. Supply is expected to rise from 3.363Mt in 2023 and 3.526Mt in 2024 to a forecast 3.735Mt in 2025. Demand will rise as well, though alternative battery chemistries like lithium-iron-phosphate mean growth from the EV market is slower than previously predicted. READ High Voltage: Miners welcome Aussie $1.2bn critical minerals stockpile plan Nickel tumbled as low as US$14,084/t before recuperating. Pic: LME Iron ore (SGX Futures) Price: US$96.31/t % Change: -4.63% Iron ore largely weathered the storm when it comes to tariffs, and fears they would kill the export market for Chinese steel. That market has propped up the sector, where mills have largely struggled to return profits in the past couple years. Despite shrinking margins steel production for April is likely to be solid, with MySteel reporting utilisation rates across the blast furnaces it surveys at 92%. Rio Tinto remains bullish on the outlook for Aussie iron ore, pledging to invest upwards of US$13bn on replacement mines in the next three years. UP China surprise to the upside with a 5.4% lift in GDP in the March quarter. Iron ore bosses remain bullish on the downside limits for iron ore, with MinRes CFO last month saying there was support around US$90/t as it looks to get production up and costs into the US$40s/t range at its stuttering Onslow Iron project. DOWN Andrew Forrest delivered a warning to Australia in a speech suggesting high grade African iron ore from the Simandou mine could hurt the Aussie market. It all came as part of a pitch for green iron funding, if you want to be cynical (Forrest's Fortescue owns its own African project at Belinga in Gabon). Marginal producers are having to reconsider their investment strategies, with Grange Resources (ASX:GRR) withdrawing a proposal to amend its State Environmental Approval for the Southdown magnetite project near Albany in WA. READ Bulk Buys: Majors stay bullish on bulks, even as fears circle Iron ore won't buckle under tariff pressure, yet. Pic: SGX Lithium (Fastmarkets Carbonate CIF China, Japan and Korea) Price: US$8700/t % Change: -6.95% Lithium prices continue to struggle under the weight of a supply rush that took spot pricing from over US$80,000/t to under US$10,000/t for key chemicals between 2022 and 2024. Fastmarkets lithium carbonate pricing in China, Japan and Korea has recently fallen to its lowest level in four years. With so much pressure on producers, it can only be a matter of time before supply discipline really starts to take hold. UP Albemarle boss J. Kent Masters estimated some 40% of lithium producers could be lossmaking. Generally when you're that far into the cost curve something has to give. EV sales growth is stronger than some naysayers would have you believe, clocking in at around 30% in the March quarter. DOWN CATL unveiled the second generation of its sodium ion batteries, a product its founder Robin Zeng thinks could eventually replace half of all LFP car batteries Supply cuts could prove sticky if low cost operations in the US, which could see subsidies and support from the Trump Admin, and Argentina, led by Rio Tinto, are brought online despite low prices. READ Lithium could turn quickly, and Argentina is the place to be OTHER METALS Prices correct as of April 30, 2025. Silver Price: US$32.23/oz %: -5.37% Tin Price: US$31,348/t %: -14.45% Zinc Price: US$2952.50/t %: +3.52% Cobalt Price: $US33,700/t %: -0.78% Aluminium Price: $2399.50/t %: +5.27% Lead Price: $1957.50/t %: -2.70% Graphite Price: US$415/t %: -3.49% Originally published as Up, Up, Down, Down: Here's how the US-China trade war impacted commodities in April
News.com.au
05-05-2025
- Business
- News.com.au
Up, Up, Down, Down: Here's how the US-China trade war impacted commodities in April
Gold and uranium were the only winners among our eight key Up, Up, Down, Down commodities after hitting new highs in April Coal, lithium, nickel hit multi-year lows Iron ore, copper rocked by tariffs, but rare earths capture imagination in spite of price drop Gold Price: US$3302.50/oz % Change: +6.00% There's nothing that gets the punters going like gold right now. Futures over in the States charged as high as US$3500/oz after Donald Trump's tariffs on all and sundry sent markets into a tailspin and investors chased sexier forms of safe haven. US bonds, the investing version of staying in on Friday night to watch reruns of Grand Designs, went haywire and the US dollar dropped hard, sending money flocking into gold. That subsided somewhat when the Trump Administration pulled a reverse ferret, sending bullion falling into the end of the month. No worries for gold producers, who are tracking to pull in stonking profits this year with spot margins sitting at upwards of $3000/oz plus or minus some hedging and additional royalty payments. Investment demand for gold rose 170% year on year in the March quarter, with gold demand hitting a level for a March quarter not seen in nine years. ETF inflow remained strong in April, with Chinese inflows immediately after Liberation Day exceeding flows into Chinese ETFs through all of January-March. DOWN Gold prices dipped after hitting their all-time high, coming under pressure as Donald Trump's stance on China trade tariffs softened. Chinese gold sales heading into the Labour Day public holiday week also put pressure on the gold price, with around 1Moz of bullion liquidated from Shanghai futures and gold exchange holdings ahead of the break. Uranium (Numerco) Price: US$67.50/lb % Change: +5.05% Spot uranium prices finally took a turn back for the better, climbing sharply at the end of April and after month's end. They're now at US$70/lb, heading back in the direction of contract based term prices which are hovering around US$80/lb and more accurately reflect prices being accepted by utilities. A major trigger was a disappointing March quarter for the world's largest producer Kazatomprom. The street is growing less certain of its ability to hit guidance this year after a 14% QoQ drop in yellowcake output from its Kazakh mines. UP Cameco's Tim Gitzel told analysts on an investor call that as much as 70% of utility requirements for the next two decades remains uncontracted, suggesting utilities will need to return to the market in a big way. Deep Yellow (ASX:DYL) delayed FID again on its Tumas mine in Namibia, suggesting much higher prices were needed to incentivise new supply, prolonging emerging deficits. DOWN It matters little on the global scale, but the strong election win by Anthony Albanese's Labor Party over Peter Dutton's Liberal-National Coalition will chill momentum from the nuclear and uranium lobbies in Australia. It's way to early to even consider it at this stage, but it's also hard to find uranium bears, so this is our second 'down' for this month. Uranium price rebound is overdue, and these African projects are getting ready LOSERS Coal (Newcastle 6000 kcal) Price: US$97.50/t % Change: -5.75% Coal was put under pressure in April, with Newcastle coal futures hitting a four year low of US$93.70/t on April 23, according to Trading Economics. A ramp up in Chinese domestic coal output and mild Asian winter have combined to reduce demand for seaborne coal at a time of strong supply. Met coal prices on the other hand rose at the end of the month after a fire at the Moranbah North mine in Queensland and solid steel production numbers out of China and India. Futures surged as high as US$198/t in early April and are now at US$185/t, having crashed in the US$160s in March. UP Glencore has crystallised plans to cut production at Cerrejon in Colombia by up to 10Mt in 2025, a move which could thrust the conglomerate into conflict with local unions. Strong quarterly and half year results from New Hope Corp (ASX:NHC), Whitehaven Coal (ASX:WHC) and Yancoal Australia (ASX:YAL) showed many Australian miners could still make cash with the right cost base and product mix. DOWN Around 10-15% of the coal market is now lossmaking, according to Commbank's Vivek Dhar. That means prices could rebound, but high inventories and weaker Chinese demand will likely keep prices in check without mine closures. Rare Earths (NdPr Oxide) Price: US$56.36/kg % Change: -7.75% The fortunes of the rare earths market and rare earths stocks diverged as Trade War mania sent critical minerals explorers soaring at the same time prices were coming off the boil in China. One big question now is how relevant pricing indices will be if Western governments can subsidise supply chains outside the rare earths heartland into existence. Lynas (ASX:LYC) is looking to begin producing dysprosium and terbium later this quarter, two heavy rare earths recently placed under export controls by the Chinese Government. It's looking for western buyers, delivering the promise of a supply chain for those metals in which the Chinese price is not relevant. UP Analysts are beginning to project higher consumption for rare earth magnets as tech companies begin to commercialise humanoid robots in China, the US and elsewhere, potentially doubling the size of future rare earths demand. Executive orders from Donald Trump's US Administration, and rumours about a planned rare earths stockpile, have sent rare earth stocks on a tear. Lynas is up ~30% YTD and smaller rare earth stocks are also catching tailwinds. DOWN Rare earth demand in the key market of China remains subdued, with the Shanghai Metals Market reporting the market is heading into an 'off-season' for purchases. Some market participants are concerned critical minerals stockpiles like the one proposed by Australia could bring uneconomic projects to market, subduing or distorting market pricing in the years ahead. Copper Price: US$9125/t % Change: -6.02% Copper fell at the whim of US President Donald Trump, with the initial surge from the fear tariffs could be imposed on the metal drowned out by the magnitude of the economic damage wrought by reciprocal tariffs. The market remains delicately balanced, with Chinese buying of inventory stock and creeping backwardation showing there remains tightness in the physical market. UP Copper supply remains a delicate thing, with a death and subsequent outage at BHP's Antamina JV in Peru leading to a late month recovery in prices. The threat of copper specific tariffs remains live, with US prices still priced far above the LME benchmarks. DOWN The International Copper Study Group expects to see surpluses of 289,000 tonnes for 2025 and 209,000 tonnes for 2026. The ICSG has also revised down its copper usage growth rate for 2025 from 2.7% to 2.4% on account of the trade war, slowing to 1.8% next year. Nickel Price: US$15,418/t % Change: -3.14% Three month LME nickel prices sagged as low as US$14,030/t during the month of April, a low point stretching back to August 2020. That came as Trump's tariffs roiled markets and a surplus driven by a surge in Indonesian nickel supply, much of it bankrolled by China, kept supply-demand dynamics in check. UP Indonesia has lifted taxes on nickel miners, something which could chill output from the island nation, though the 14-19% price linked royalties will be far higher than rates for refined products like ferronickel and matte. ASX bellwether Nickel Industries (ASX:NIC) delivered a strong set of quarterly results, showing it remains profitable even with subdued prices. DOWN The nickel surplus will rise from 179,000t in 2024 to 198,000t in 2025, according to the International Nickel Study Group. Supply is expected to rise from 3.363Mt in 2023 and 3.526Mt in 2024 to a forecast 3.735Mt in 2025. Demand will rise as well, though alternative battery chemistries like lithium-iron-phosphate mean growth from the EV market is slower than previously predicted. READ High Voltage: Miners welcome Aussie $1.2bn critical minerals stockpile plan Iron ore (SGX Futures) Price: US$96.31/t % Change: -4.63% Iron ore largely weathered the storm when it comes to tariffs, and fears they would kill the export market for Chinese steel. That market has propped up the sector, where mills have largely struggled to return profits in the past couple years. Despite shrinking margins steel production for April is likely to be solid, with MySteel reporting utilisation rates across the blast furnaces it surveys at 92%. Rio Tinto remains bullish on the outlook for Aussie iron ore, pledging to invest upwards of US$13bn on replacement mines in the next three years. UP China surprise to the upside with a 5.4% lift in GDP in the March quarter. Iron ore bosses remain bullish on the downside limits for iron ore, with MinRes CFO last month saying there was support around US$90/t as it looks to get production up and costs into the US$40s/t range at its stuttering Onslow Iron project. DOWN Andrew Forrest delivered a warning to Australia in a speech suggesting high grade African iron ore from the Simandou mine could hurt the Aussie market. It all came as part of a pitch for green iron funding, if you want to be cynical (Forrest's Fortescue owns its own African project at Belinga in Gabon). Marginal producers are having to reconsider their investment strategies, with Grange Resources (ASX:GRR) withdrawing a proposal to amend its State Environmental Approval for the Southdown magnetite project near Albany in WA. Lithium (Fastmarkets Carbonate CIF China, Japan and Korea) Price: US$8700/t % Change: -6.95% Lithium prices continue to struggle under the weight of a supply rush that took spot pricing from over US$80,000/t to under US$10,000/t for key chemicals between 2022 and 2024. Fastmarkets lithium carbonate pricing in China, Japan and Korea has recently fallen to its lowest level in four years. With so much pressure on producers, it can only be a matter of time before supply discipline really starts to take hold. UP Albemarle boss J. Kent Masters estimated some 40% of lithium producers could be lossmaking. Generally when you're that far into the cost curve something has to give. EV sales growth is stronger than some naysayers would have you believe, clocking in at around 30% in the March quarter. DOWN Lithium could turn quickly, and Argentina is the place to be OTHER METALS Prices correct as of April 30, 2025. Silver Price: US$32.23/oz %: -5.37% Tin Price: US$31,348/t %: -14.45% Zinc Price: US$2952.50/t %: +3.52% Cobalt Price: $US33,700/t %: -0.78% Aluminium Price: $2399.50/t %: +5.27% Lead Price: $1957.50/t %: -2.70% Graphite
News.com.au
05-05-2025
- Business
- News.com.au
These juniors could go nuclear if signs of recovery continue for uranium prices
The uranium market seems to be turning As tariff threats loom, contract prices continue to hold up their multi-year highs Could one of these seven bargain barrel picks be the next multi-bagger uranium stock? Uranium spot prices have finally woken from their slumber, with prices climbing from a persistent 18-month low in the US$64/lb range to US$70/lb at the end of last week. The recharge has been helped by a production disappointment from Kazatomprom, the world's largest producer. Cameco's Tim Gitzel said market uncertainty, especially around whether some uranium imports could eventually be placed on Trump's tariff list, has also kept utilities out of the market. But that means some 70% of demand for the next two decades remains uncontracted, a recipe for a price shock down the line. Long-term contract prices, which offer a clearer view of the market's underlying long-term dynamics, are also continuing to hold up multi-year highs at over US$80 per pound. Unlike most commodities, uranium is not actively traded on major exchanges. Instead, the market is dominated by long-term, bilaterally negotiated contracts that meet the annual fuel needs of nuclear power plants, with only a limited spot market addressing short-term or discretionary demand. Guy Le Page, a former geologist, experienced stockbroker and director at Perth-based financial services provider RM Corporate Finance says along with the positive contract price, there are four other reasons why the uranium market is set to bounce in the near term. These include a declaration by 31 countries at COP28 to triple global nuclear capacity by 2030 and the fact that renewable energy is incapable of providing base-load power with zero carbon emissions. 'Nuclear is one of the cleanest fuel sources likely to take a leading role around the globe in the provision of base-load power as fossil fuels are phased out,' he said. ' reason that uranium is gaining ground, according to UxC Uranium Market Outlook , is that utility activity remains robust, averaging over 90 per cent via term contracts in the past three years with contracted activity remaining below replacement levels. 'They also believe that global nuclear utilities have approximately 1 billion pounds of uncovered uranium requirements over the next decade, which indicates significant future demand in the market and could drive higher prices and create supply challenges.' Le Page sees uranium contract prices surging above the US$80-85 mark to around $115 or $120 per pound in the next two years. 'I think that $120 mark is going to be the incentive price going forward to bring on new uranium production – there is about a billion pounds of uranium that is uncovered and required for utilities, which is a substantial amount and obviously the spot market is quite illiquid, relying on going to the spot market to top up their requirements is really not an option," he said. Another Guy following uranium closely – Tribeca's Guy Keller – says nuclear generation capacity is now being pushed 'extraordinarily hard' by global tech companies that are cashed up and spending billions rolling out technologies that require base-load electricity. He believes there will be a crunch point where tech companies will question utilities about whether they have the uranium to support nuclear electricity for the next 20 years. The World Nuclear Association (WNA) projects a significant increase in global uranium demand over the coming decades, primarily driven by the growing nuclear power sector and increased global electricity demand. The WNA's Nuclear Fuel Report estimates that uranium requirements will increase by 28% between 2023 and 2030 and by 51% between 2031 and 2040, based on a reference scenario. This growth is influenced by both the expansion of existing nuclear power plants and the construction of new ones. Could one of these bargain barrel picks be the next multi-bagger uranium stock? Finding a diamond in the rough among microcaps is the dream scenario for any investor. Because they can scale more quickly, small-cap companies tend to outperform their larger peers over time, especially for those with the patience and risk tolerance to hold through the ups and downs. We've collated a list of seven sub-$30m market cap stocks with exposure to this exciting uranium thematic. Market cap: $9m GTR holds the Lo Herma ISR uranium project in Wyoming, where it recently completed conceptual design and cost estimation work completed for wellfield installation and processing plant construction. This latest body of work follows positive results from hydrological and metallurgical studies and completes the key input studies for the scoping study, which remains on track to be delivered during Q2 2025. GTR executive chairman and CEO Bruce Lane told Stockhead the company's core activity for 2025 so far has been progressing the scoping study for the Lo Herma project so that it can illustrate the baseline economics of the asset. 'We've gotten through all of the fieldwork, we've done the key economic studies for the processing plant, the construction phase and the well field – really now is just knocking the report into shape and I say, illustrating the baseline economics for the project," he said. Project resources currently stand at 6.21Mt at 630ppm eU3O8, or 8.57Mlb contained U3O8, with 32% or 2.78Mlb in the indicated category, which compares favourably against Ur-Energy's nearby 8.8Mlb Shirley Basin ISR build, and Encore Energy's 8.1Mlb Gas Hills ISR project. An amendment to GTI's current Drilling Notification Permit is being prepared, focused on further exploration of defined exploration targets to expand resources further. The company has also completed four monitor wells, all of which have demonstrated sufficient submergence of Lo Herma mineralisation within the local groundwater system to support ISR mining. Market cap: $4.67m CR3 expects to mobilise drilling rigs to the Cummins uranium project in the second quarter of 2025, with permitting underway to enable a maiden campaign targeting 'roll front' style mineralisation. Historical drilling data – validated by French state-owned uranium exploration company Areva in 2009 – points to several broad, shallow zones of radioactive mineral concentrations over an area of more than 10km. CR3 has since interpreted several areas to host roll front mineralisation prospective for uranium, representing high-priority areas for the maiden drilling campaign. The company also owns the Brooker project, which sits directly to the northeast of Cummins along the western margin of the Port Lincoln Uplands in an area with several uraniferous granite source rocks and uranium occurrences. CR3 is led by Latin Resources alumni including executive director Anthony Greenaway and chairman Chris Gale, who were key figures in the growth of the Brazilian lithium upstart which captured a major win for investors with its $560m sale in January to Pilbara Minerals (ASX:PLS). Terra Uranium (ASX:T92) Market cap: $3.16m T92, which listed on the bourse in 2023, is backed by uranium veterans Andrew Vigar, the co-founder of several public listed companies including $125m market cap uranium company Alligator Energy (ASX:AGE), and ex-head of operations at Cameco Mike McClelland. The company owns an impressive nine projects covering 181,779ha in the highly prospective Athabasca Basin Region, Canada. A further 12 mineral claims totalling 60,965ha in the Spire & Horizon Projects are under option from ATHA Energy Corp – widely recognised as one of the largest uranium exploration companies in North America. T92 commenced operations on the shallower uranium targets at the Spire & Horizon Projects with ground reconnaissance and airborne geophysics. Several targets for follow-up work have been identified. A coordinated program across all projects has been prepared. Permits are in place for an efficient and focused drill program in 2025 across multiple drill-ready targets. The company continues negotiations with other groups to fund drill programs. Greenvale Energy (ASX:GRV) Market cap: $27.27m With a $1.8m cap raise now complete, Greenvale Energy is gearing up to explore its newly acquired Oasis project in Queensland, which bares similarities to the monstrous Rossing uranium mine in Namibia. Greenvale is anticipating drilling at Oasis as soon as next month. The funds will also support the next phase of exploration across Greenvale's uranium prospects in the NT's Pine Creek mineral field, starting with radiometric surveys and aircore drilling. GRV added five uranium projects to its portfolio earlier this year to join its existing Alpha torbanite project, also in Queensland. It strongly believes Australia could end up being home to half of the world's uranium resources. 'Remarkably, Australia has more uranium than any other country in the world. We have 28% of the world's uranium reserves, and that's without a sustained exploration effort by the juniors,' Greenvale's Neil Biddle, a key figure in the early days of Pilbara Minerals, said. 'If the juniors got stuck into exploring for uranium, it wouldn't surprise me if Australia ended up with half the uranium reserves in the world. That makes Australia a key player in the nuclear industry going forward." Market cap: $3.60m Over in Montana, close to the Wyoming border, Recharge holds the Carter uranium project, which sits within 250km of six permitted ISR uranium production facilities. The project was intensely explored by numerous major mining and energy companies during the late 1970s and early 1980s with exploration focused on the northern rim (extension) of the Powder River Basin from Wyoming into Montana. Carter contains two significant high-grade historical resources at the Acadia deposit, where 3.7 Mlbs at 1,250ppm U3O8 has been estimated, and the Mindy deposit, where 1.4 Mlbs at 1,560ppm U3O8 is recorded. The project covers a highly prospective land package along a regional roll-front uranium trend extending about 11km. REC has purchased a large exploration database and is currently compiling and reviewing the wealth of information that contains and recently met with local ranch owners to ensure a collaborative approach to land access. The permitting process has kicked off with an experienced consulting group to ensure compliance with environmental and land use requirements, laying the groundwork for upcoming drilling. Data compilation, geological review, and target generation are now in the final stages of planning, with drilling to focus on high-priority targets identified from historical data and recent evaluations. Market cap: $6.34m KOB has notched up three new high-grade uranium finds at its Yarramba project in the past 12 months, right next to producing operations in South Australia. The latest find, the Everest prospect, is immediately north of Boss Energy's (ASX:BOE) 10.7Mlb Jasons Deposit and the Honeymoon uranium mine. That addition takes the count to three high-grade discoveries for KOB, all grading above 1,000ppm, joining Berber (1.6m at 1,026ppm) and Chivas (0.5m at 1,028ppm). With heritage approvals now in hand, the company is set to begin infill and extensional drilling in the second quarter. Moab Minerals (ASX:MOM) Market cap: $2.60m MOM's uranium portfolio spans Tanzania, Colorado and southern Nevada with the Manyoni and Octavo assets in Africa and the REX project in the US. Last year's acquisition of the Manyoni and Octavo projects marked a turning point for the company, with former owner Uranex having carried out significant exploration and drilling from the early 2000s to 2013 –leaving MOM with a rich dataset to build on. Both sit within the central Tanzanian Archean Shield, with initial four-year terms that are extendable for additional periods. Results from recent PQ core drilling at Area A of the Manyoni project have revealed consistent uranium mineralisation across the tenements. The next step is to correlate these findings with historical assay data to underpin a JORC resource. At Stockhead we tell it like it is. While GTI Energy, Core Energy Minerals, Koba Resources, Greenvale Energy and Recharge Metals are Stockhead advertisers, they did not sponsor this article.
Yahoo
03-03-2025
- Business
- Yahoo
PDAC 2025: Kazakh uranium miners look to take advantage of nuclear resurgence
Kazakhstan, the world's largest uranium producer, is hoping to capitalise on a nuclear power resurgence, according to mining executives speaking at PDAC 2025 in Toronto yesterday (2 March). Opening the panel discussion, Dastan Kosherbayev, chief director for strategy and international development at state-owned Kazatomprom, said a second uranium renaissance is 'actively developing' and 'demand is robust'. 'The nuclear sphere is receiving support, not only from political entities, but from financial institutions as well,' he added, pointing to an agreement signed by 14 financial institutions during New York Climate Week in September 2024. Kosherbayev also referenced the Net Zero Nuclear initiative, which calls for a tripling of nuclear energy by 2050. Cameco, which owns Inkai 3 through a 40:60 joint venture with Kazatomprom, joined the initiative as a strategic partner in February 2025. 'The primary benefit from the [nuclear industry] rejuvenation [is that] we are expecting demand to increase significantly with structural shortfalls in production,' said Sean Quinn, senior vice-president, chief legal officer and corporate secretary at Cameco. Quinn also pointed to Cameco's ambition to gain a greater foothold in the conversion and enrichment space. 'As the uranium industry reboots itself… we are looking to our investment in Westinghouse and other fuel cycle opportunities like GLE [Global Laser Enrichment] that can give us even greater exposure,' he said. GLE is the licensee of the proprietary Separation of Isotopes by Laser EXcitation laser uranium enrichment technology. Cameco is the commercial lead for the GLE project with a 49% interest and an option to attain a majority interest of 75%. Meanwhile, Kosherbayev pointed to Kazatomprom's ambition to expand its footprint in the nuclear fuel cycle and rare earth space, as outlined in Kazatomprom's strategy for 2025–34, released in January. 'Conversion and enrichment projects may come as lucrative. Of course, we would like to expand outputs in these areas but not at any cost,' he stated. Kosherbayev added that Kazatomprom has identified rare earth element by-products such as scandium at some of its mines and that the company is currently testing potential equipment to separate these by-products efficiently. 'Should that happen, we are going to pursue some industrial-sized opportunities,' he said. However, he noted that natural uranium remains Kazatomprom's largest revenue stream, accounting for around 90% of sales. Kazakhstan was the world's leading uranium producer in 2024, contributing 38% of global output and delivering a 10.4% increase compared with 2023, according to a recent report from GlobalData, Mining Technology's parent company. The country's uranium industry is poised for significant growth, with production projected to rise at a compound annual growth rate of 6.2% from 2025 to 2030, culminating in an estimated output of 30,500 tonnes by 2030, GlobalData's report added. "PDAC 2025: Kazakh uranium miners look to take advantage of nuclear resurgence" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
